Most people use Trade Republic like a toy. But if you treat it like a tool, you can build real wealth. This blog shows how to run a proven investment strategy - Shareholder Yield - inside the app. It focuses on big companies that reward you through dividends and buybacks.
You will learn when to buy, when to sell, and how to avoid emotional mistakes. Best of all, you can start with just €100. If you want a simple system to grow your money without gambling, this is for you.
Estimated Reading time: 6 minutes
A Simple Proven Investment Strategy You Can Run Inside Trade Republic
Trade Republic has made it easier than ever to invest. You can buy global stocks, ETFs, bonds, crypto, and even derivatives - all from your phone. You can start with just €1, and the fee is only €1 per trade.
It feels exciting and fast, which is why so many people love it. But here is the truth: easy does not always mean better.
These apps can make investing feel like a game. When something feels like a game, you may act without a plan. And that is dangerous.
If you want to grow your money, you need more than a fun app. You need a smart plan you can follow no matter what happens in the market.
Why Investors Like You Love Trade Republic - and What to Watch Out For
Trade Republic is perfect for getting started. The low fees and simple design help you take your first step. You can invest in real companies with small amounts. You can set up a savings plan and invest without even thinking about it. Plus, your unused cash earns interest, and you get rewards when you spend with their card.
But here is the problem: many of these features can push you to make quick moves.
· The app feels like social media.
· You check prices too often.
· You chase hot stocks or crypto because everyone is talking about them.
That is how investing becomes a game - and most people lose when they play that game.
Use the App, But Not Like a Gambler
You should not avoid Trade Republic. In fact, you should use it more - but with a plan.
A real investing plan helps you stay calm when the market moves. It helps you build habits that work even when you have more money later.
Think of Trade Republic as a tool. Just like a sharp knife can help a great cook or hurt a careless one, how you use the app matters. If you follow a proven strategy and stick with it, you can learn how to grow your money - step by step.
A Simple Strategy That Fits Perfectly in Trade Republic
Let me introduce you to a strategy called Shareholder Yield. It is simple, safe, and smart. This strategy looks for big companies that send money back to you. They do this by paying dividends and buying back their own shares.
You do not need to guess what the market will do next. You do not need to chase trends. You just follow this system and invest in companies that treat shareholders well.
And the good news? You can use this exact strategy inside Trade Republic - with small or large amounts of money.
Why Shareholder Yield Is a Great Fit for You
This strategy is perfect for Trade Republic users.
A subscriber from our Shareholder Yield Newsletter tested all the stock ideas from a recent issue. He found that every company on the list could be bought in Trade Republic.
For example, you could buy a top stock like Kawasaki Kisen for just €100. Your trading fee would still be €1 - whether you invest €100 or €10,000.
That is much cheaper than other platforms, where fees can be €9 or more.
How the Strategy Works
The Shareholder Yield strategy is built on one idea: invest in companies that give money back to their investors.
These companies usually have strong earnings and good balance sheets. They pay you a dividend and also buy back shares. This makes your share of the company more valuable.
Backtests have shown that this strategy has beaten the market for many decades. Over 10-year periods, it gave more stable and better returns than the market and better returns you can ever get by guessing.
The following table shows you the results of simply buying the 10% of large stocks with the highest Shareholder Yield (dividend yield plus net stock buybacks) over an 80-year back test period:
Source: 7 Traits for Investing Greatness
Over all 961 (777+184) rolling 3-year periods, the top 10% Shareholder Yield companies beat other large stocks 81% of the time by an average 3.24% per year.
If you extend the test to all 877 (855+22) rolling 10-year periods, you would have beaten the market 97% of the time by 3.41% per year.
That is an outstanding result!
The Simple Rules You Can Follow
Here are the only steps you need to follow:
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Only buy new shares when the market is rising (you can check this with the MSCI World Index above its 200-day average).
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Use a 20% trailing stop-loss rule. If a stock falls more than 20% from the highest price since your purchase price, sell it.
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Review your portfolio once a month.
That is it. No need to check prices every day. No need to read the news or listen to hot tips.
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How to Use Trade Republic to Run the Strategy
Example from the first page of the newsletter - it shows you exactly what to do:
Here is what to do inside the app:
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Open Trade Republic
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Sell all the shares marked sell.
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Search for and buy the new stocks recommended in the Shareholder Yield Newsletter.
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Buy one or more stocks for no more than 2% of your portfolio or €100–€200 each, depending on your budget.
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Set a reminder to review your portfolio each month.
Why Starting Small Is So Powerful
You may think that investing €100 is too small to matter. But what you are building is more important than how much you invest. You are building a habit. You are learning how to manage emotions. You are testing a proven system.
Later, when you have more money, you will know exactly what to do.
You will not fall into traps like chasing the next big thing. You will not panic when the market drops. You will have a plan - and the confidence to follow it.
What You Will Learn (Emotionally and Logically)
Running this strategy in the app teaches you both how to invest and how you respond to investing.
· You will see how it feels to buy and hold.
· You will feel what it is like to take a loss and stick to a rule.
· You will learn how to think long-term, not short-term.
This is the best investment classroom there is - real money, small size, and real lessons.
Avoid These Common Mistakes
Even smart investors make these errors:
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Trading based on emotions, not data
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Chasing what is popular online
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Skipping stop-loss rules
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Over-diversifying into too many small positions
If you want to succeed, keep it simple. Follow your system. Stay consistent.
Final Thoughts: Use the App, But Lead with the Plan
Trade Republic is a powerful tool. You can use it to grow your wealth with small amounts and low fees. But only if you stop thinking like a trader and start acting like an investor.
Start with €100 and a proven plan. Follow the Shareholder Yield system. Learn as you go. Stay calm. Over time, you will become the kind of investor who succeeds - not by luck, but by design.
Not A Shareholder Yield Letter subscriber? - Click here Sign Up right NOW!
FREQUENTLY ASKED QUESTIONS
1. What makes Trade Republic a good platform for beginners?
Trade Republic offers low fees, a simple design, and lets you invest with as little as €1. This makes it easy to get started without needing a large portfolio. You can set up a savings plan, earn interest on cash, and invest in real companies directly from your phone. But remember: simplicity does not replace the need for a smart plan.
2. Why is it risky to treat investing like a game?
Apps like Trade Republic can feel like social media. This encourages quick decisions, like chasing hot stocks or checking prices too often. When investing feels fun and fast, you may act on emotion instead of logic. That is how many investors lose money. A solid plan like the Shareholder Yield strategy helps you stay calm and make better choices.
3. What is the Shareholder Yield strategy and why does it work?
This strategy focuses on big companies that return money to investors. They do this by paying dividends and buying back their own shares. These companies often have strong profits and healthy balance sheets. Backtests show this approach beat the market 97% of the time over 10-year periods. It is simple, safe, and proven.
4. How can I follow the Shareholder Yield strategy inside Trade Republic?
You only need four steps: (1) Buy when the market is rising (check the MSCI World Index above its 200-day average), (2) Pick stocks from the Shareholder Yield Newsletter, (3) Use a 20% trailing stop-loss rule, and (4) Review your portfolio monthly. You can buy €100–€200 per stock and pay just €1 per trade.
5. What are the most common mistakes investors make on platforms like Trade Republic?
Many investors trade based on hype, skip stop-losses, or buy too many small positions. These mistakes can hurt long-term results. The solution is to follow a clear system, stick to your rules, and avoid chasing trends. Simplicity and consistency win over time.
6. Is starting with just €100 really worth it?
Yes. Starting small helps you build a habit and learn how to follow a strategy. It trains you to manage your emotions and make smart choices. Later, when you invest more money, you will already know what to do. That confidence is far more valuable than trying to time the perfect moment.
7. How often should I check my investments?
Once a month is enough. The Shareholder Yield system is designed to reduce stress and avoid overtrading. You do not need to read daily news or react to every market move. Instead, follow your plan, check your portfolio monthly, and make changes only when your rules tell you to.
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